Gold loses its shine as high price hits Indian demand

The Europeans thought they were gaming the "Cap" by backdating the start date.The Americans thought they were gaming the treaty by insisting on "Trade".

The Indians and Chinese said "Sure, send us the money".

The Westerners thought they would out-negotiate people who've been negotiating for 5000 years.

As a side note, in December 1979, as silver was making its historic run, an old Jewish trader told me he was lightening up on Ag.

When I asked why he said "I hear the Indian ladies are taking their bracelets off and they've been trading it longer than I have".

From the Times of London:

Indian imports, the largest in the world, have fallen as much as 80 per cent this month as precious metal nears record

India's love affair with gold is waning as savvy housewives in the world's largest importer of the precious metal opt to capitalise on rocketing prices by selling off their spare jewellery.

With prices of the commodity, traditionally viewed as a safe haven in uncertain times, hovering close to record highs, Suresh Hundia, head of the Bombay Bullion Association, said that Indian consumers are deferring all but the most essential gold purchases. "People, households, are selling spare gold. There is zero demand at these prices in India," he said.

Amid volatile trading, gold gained 3 per cent last week, again closing well above $900 (£454.60) an ounce. In India, meanwhile, prices have surged past 10,000 rupees per 10 grams, a level considered especially significant by retail buyers. Today, gold for February was being quoted at 11,615 rupees per 10 grams of the Multi Commodity Exchange of India.

Monesh Belel, of Tribhovandas Bhimji Zaveri, one of India's largest retail jewellery groups, said: "Seven out of ten Indians will sell at levels above 10,000 rupees per 10 grams.">>>MORE